Retailers Improve Customer Loyalty
Written by: Stefanie Gray
Back-to-school is already in full-swing which means Marketing has turned its attention to holiday. As retailers begin to plan holiday sales strategy, it is safe to assume that offers will be a part of the mix. As consumers are perusing FSI’s, online sites, weekly flyers, or watching TV in search of holiday savings, retailers have the perfect opportunity to grab their attention and improve customer loyalty by incenting consumers to sign-up for their loyalty program using their mobile device. Why not, it’s most likely within reach.
Based on years of experience working with some of the largest retailers in the industry, the following are important considerations to successfully sign-up consumers to your loyalty program:
The Call-to-action: In real estate it’s all about location. And in marketing, it’s all about getting the word out. If consumers don’t know about your loyalty program, they can’t sign-up. Where you advertise depends on where consumers look for information about the products and services you sell. Do you have an online presence? Do you send out a weekly flyer? Do you advertise in specialty magazines or invest in email marketing? Wherever consumers are looking, you need to issue an invitation to join your loyalty program.
Recommendation #1 – Stores need to be involved in promoting a loyalty program. In addition to placing signage throughout the store, incent the sales staff to encourage customers to join. Employees are critical to the success of your program. According to Demand Metric, 55% of organizations with employee engagement rates of more than half experience customer retention rates greater than 80%.
Recommendation #2 – Inspire consumers to join. In addition to earning points for future purchases, build a community of members. Whether you create an environment where members can compare and contrast dark roasted versus blonde coffee beans or let customers share feedback regarding a recent retail experience, you should provide a forum for your loyalty program customers to engage.
The Reward: Deliver a compelling mobile coupon they must have. Reward your new loyal customers for sharing information about themselves (e.g., mobile number, name, zip code). There’s no better way to create a feel-good moment than with an instant mobile coupon. In fact, 62% of consumers don’t believe that the brands they’re most loyal to are doing enough to reward them (ClickFox).
Recommendation #3 – Compensate the consumer for taking time and expending energy to sign up to your loyalty program. $10 OFF $50 is a good offer. 20% OFF a customer’s basket is a great offer. The richer the offer, the higher the number of sign-ups.
Recommendation #4 – Limit the window of opportunity for customers to use the welcome coupon. Most of the welcome offers we deliver on behalf of our retailer customers expire two weeks from issuance. This practice encourages quick redemption. According to Customer Insight Group, first-time customers have a 30% chance of becoming long-term profitable customers. If they make their first purchase quickly, the opportunity for them to become long-time customers more than doubles to almost 70%.
The Sign-up Process: Has to be easy. This is your opportunity to make a good first impression.
Recommendation #5 – If you’re collecting more than a mobile phone number, sign-up should be form-based. Your customers will be able to enter personal data, agree to participation requirements, and review terms & conditions in a single encounter.
The Delivery: Most important to your customers is what happens after they sign up for your loyalty program. Will they receive a digital loyalty card or rewards number? How about a mobile coupon? Did you know that 54% of respondents would consider increasing the amount of business they do with a company for a loyalty reward (ClickFox)?
Recommendation #6 – Thank them for signing up. Displaying a web page with a BIG THANK YOU as well as information when they can expect their first reward will go a long way in making a good first impression.
Recommendation #7 – Be explicit. Set expectations accurately regarding what customers will receive when they sign-up for your loyalty program. For example, you may want to delay the delivery of mobile coupons encouraging customers to use the offer on a subsequent trip. There are many valid reasons for this approach. The point is to make sure your customers understand any restrictions you place on the reward. The last thing you want to do is confuse new customers by not being clear. According to Customer Insight Group, 81% of loyalty program members do not know how/when they will receive rewards.
Our retail customers improve customer loyalty and have realized great success signing up consumers for their loyalty programs. In addition to seeing large numbers of sign-ups over a sustained period of time, customer engagement has increased significantly resulting in more trips and increased basket size. Click on loyalty program sign-up to learn how CodeBroker’s Smart Join can help you convert consumers to loyal customers.